Schorsch's RCS Capital signs smart-data lead generation deal with Vestorly

Tech startup will bring digital marketing to holding company as it acquires broker-dealers

Nov 21, 2013 @ 2:03 pm

By Joyce Hanson

Vestorly co-founders Ralph Pahlmeyer (left) and Justin Wisz.
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Vestorly co-founders Ralph Pahlmeyer (left) and Justin Wisz.

As it pursues a series of broker-dealer acquisitions, RCS Capital Corp. has signed on with smart-data technology startup Vestorly in a digital-marketing deal designed to connect brokers with client prospects.

Vestorly, which announced the deal on Thursday, also is in discussions with other asset management firms and mutual fund companies that want access to the startup's Internet-based platform, said Vestorly chief executive Justin Wisz.

Through its deal with RCS, Vestorly is working on a number of digital marketing projects, including a web application in beta and under compliance review.

“Vestorly is a company that has really brought about a tool to reach the end user that we are looking to reach,” said Brian Spiewak, marketing director for RCS Capital, a company run by real estate investment trust and indie broker-dealer tycoon Nicholas Schorsch.

The startup provides what Mr. Wisz describes as a “custom content discovery experience” that lets consumers find engaging Internet content shared with them by friends, family and colleagues.

Brokers can pick and choose suitable content from well-known publications and share those articles in an e-mailed newsletter that is sent to clients. Vestorly is a white-label platform when used by asset managers, so what the client sees is the broker's logo.

If a client knows that a longtime friend is dealing with an estate planning issue, for example, and he reads a good article about the topic in his broker's newsletter, he can forward the newsletter to the friend with a one-click sign-on via e-mail, Facebook, LinkedIn and Twitter.

LinkedIn works especially well for wholesalers because the website shows adviser profiles as well as the content that is being shared with prospects, Mr. Wisz said.

“We use proprietary content and lead gen technology so asset managers can measure all that user data among all consumers and advisers interacting with their brand anywhere online,” he said.

This “network effect” is the future of the advisory industry, Mr. Wisz said.

“We're allowing a brand such as an asset manager or broker-dealer firm to harness the big data in their network of advisers and consumers to make that data smarter for everyone involved. This means we can identify best practices among advisers in the network and recommend them to other advisers,” Mr. Wisz said.

On Monday, RCS Capital and Mr. Schorsch, its executive chairman, announced yet another broker-dealer acquisition with the purchase of Summit Financial Services Group Inc.

In an interview, he said that he wouldn't rule out a fourth acquisition of an independent broker-dealer, though he stressed that organic growth at the businesses that he has bought is as important as growth through mergers and acquisitions.

Vestorly's Wisz on how 'smart data' can make client prospecting more efficient

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